Chana Purchased 400 Shares of Tronco Corporation Stock for $40,000 $$\begin{array} { |l | l| } \hline \text { Recognized Loss } & \text { Basis } \\\hline \$ 0 & \$ 32,000\\\hline\end{array}$$

question 103

Multiple Choice

Chana purchased 400 shares of Tronco Corporation stock for $40,000 in 2014.On December 27,2019,Chana sells the 400 shares for $24,000.Chana purchases 300 shares of Tronco Corporation stock on January 16,2020 for $8,000.Chana's recognized loss on sale of the 400 shares in 2019 and her basis in her 300 new shares are

• A) \[\begin{array} { |l | l| }
• \hline \text { Recognized Loss } & \text { Basis } \\
• \hline \$ 0 & \$ 32,000\\\hline
• \end{array}\]
• B) \[\begin{array} {| l | l| }
• \hline \text { Recognized Loss } & \text { Basis } \\
• \hline \$ 4,000 & \$ 20,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} {| l | l| }
• \hline \text { Recognized Loss } & \text { Basis } \\
• \hline \$ 12,000 & \$ 20,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { |l | l| }
• \hline \text { Recognized Loss } & \text { Basis } \\
• \hline \$ 16,000 & \$ 8,000 \\
• \hline
• \end{array}\]

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